Renters know the feeling: paying for a new rental bond out of pocket before their existing bond has been returned.
That’s why the State Labor Government is changing the law to introduce a new Portable Rental Bond Scheme and help do away with the dreaded ‘double bond’ payment. The Portable Rental Bond Scheme will allow renters to transfer their existing bond directly to their new rental property.
More than 736,000 households are expected to benefit from this change, which eases the cost of moving by removing the financial burden of paying a second bond before the first one is refunded.
Under the scheme, renters will be able to apply online to port their existing bond across to their new home. It’s a win-win for renters and providers: as part of the scheme, the Government will guarantee the existing bond amount in advance to the original rental provider until the tenancy is wrapped up and the bond claim process is finalised.
If a rental provider’s claim for a bond is successful, the renter will owe the money not to the rental provider but to the Government - and will need to pay it back up front or in stages.
The Bill will also deliver further protections to make renting fairer and rental properties safer, including:
- Requiring rental providers and their agents to provide renters with documentary evidence to support a bond claim 3 days before the claim can be lodged
- Requiring rental providers and their agents to provide supporting documentation when making an application for a bond claim to VCAT
- Banning the extra fees that get charged when you pay your own rent – including on ‘rent tech’ apps
- Requiring rental providers and rooming house operators to keep records that demonstrate their property meets the mandatory minimum standards
- Expanding gas and electrical safety checks to apply to all residential rental agreements, regardless of when a rental agreement was started
- Ensuring the health and safety of renters by requiring gas checks are undertaken prior to draughtproofing activities in residential rental properties so gas appliances operate safely.
Victoria is leading the nation on renters’ rights. Portable bonds will be the 150th rental fairness reform delivered under this State Government.
Lauren Kathage MP, Member for Yan Yean:
“Moving house is always stressful – and it doesn’t help when you have to pay a new bond before your old one’s been returned."
"Most people don’t have a spare few thousand dollars sitting around to cover the gap between getting your bond back and paying the next one."
"That’s why we’re changing the law to make things fairer for renters.”
